Jailed former opposition leader Datuk Seri Anwar Ibrahim slammed the ruling Barisan Nasional (BN) for being more interested in its own survival as he urged all political parties to set aside their differences in order to save Malaysia from economic and political crises.

In a message conveyed through his lawyers, Anwar said that allegations against Prime Minister Datuk Seri Najib Razak over the 1Malaysia Development Berhad (1MDB) corruption scandal had now been compounded by the machinations of the previous weeks, including the sacking of the Attorney-General and the gross interference with the Malaysian Anti-Corruption Commission (MACC).

He added that the nation was in crisis, and yet the BN government seemed incapable and unwilling to take strong, decisive and immediate action.

“The ringgit worsens to historic lows and investor confidence evaporates, this will have serious consequences for the well-being of every Malaysian.”But Najib and his government appear to be more interested in their own political survival than in the interest of the nation,” he said.

Anwar said that by not taking immediate action, the whole Cabinet and BN was complicit and responsible for Malaysia’s situation.

He pointed out that in the past, many patriotic Malaysians sacrificed a great deal to build and prosper the country.

“Is this how Najib and his associates repay them?

“By bringing the country to the brink of ruin?” Anwar said.

The PKR de facto leader urged all party leaders and elected representatives to put the interest of the nation above all, adding that with courage and resolution, the crisis could be overcome.

“We can yet overcome this crisis, and put in place urgent reforms, restore democracy to save this nation.

“But time is of the essence, action must be immediate,” he said.

Anwar is serving out a five year prison sentence after being convicted of sodomising former aide Mohd Saiful Bukhari Azlan in 2008.

He began his sentence in February, after the Federal Court upheld his sodomy conviction. Anwar and the opposition maintain that the charge and conviction were part of a conspiracy to end his political career.

The Supreme Court has ordered the family of former president Suharto to pay back to the state Rp. 4.4 trillion ($324 million) in funds misappropriated during the late strongman's lengthy reign.

The court ruled in favor of the prosecution in a civil case against the now-defunct Supersemar Foundation, controlled by the Suharto family. The ruling, made on July 8 but not announced on the court's website until Monday, revised an earlier ruling in 2010 which ordered the family to pay just a tiny fraction of the losses to the state.

The court repealed a 1976 government regulation issued by the former president ordering all state-owned banks to set aside 2.5 percent of their profits for the foundation. The court ruled that the funds accumulated since the foundation was established — a total sum of $420 million and Rp 185 billion — were largely embezzled and never used for their stated purpose: education.

The court has now ordered the foundation to pay 75 percent of the funds it had amassed over the years, while the 2010 ruling had ordered the Suharto family to pay $315,000 and Rp 185 million — a small sum for the once-powerful family — instead of the $315 million and Rp 185 billion the Attorney General's Office had sought. The court claimed this was due to a typo.

The AGO only filed for a case review in 2013, around the same time the Suharto family filed a separate motion looking to reverse the order.

The court "granted the case review filed by the state [the AGO] and rejected the case review filed by the Supersemar Foundation," the latest ruling states.

Malaysia’s ongoing currency crash has many causes: a worsening global outlook, plunging commodity prices and, of course, the political scandal enveloping Prime Minister Najib Razak. But the real culprit is the year 1997.

The conventional wisdom is that Malaysia’s then-leader Mahathir Mohamad saved the country from the worst ravages of the Asian financial crisis when he imposed capital controls, pegged the ringgit and waged verbal war against speculators. It’s true that Malaysia avoided much of the chaos that toppled economies in Indonesia, South Korea and Thailand. But events today show why, 18 years later, Malaysia may wind up the biggest loser in the region.

Malaysia’s neighbors recovered by improving transparency, strengthening their financial systems, and limiting collusion between public and private sectors. Such urgency never swept Malaysia, where the ruling coalition has held power for almost six decades.

Improvements in Malaysian corporate governance have been slow and uneven. Hopes for an end to 46 years of affirmative action — which benefits the Malay majority while sapping productivity and repelling foreign investors — have been for naught. Efforts to weed out corruption and ween the economy off energy exports have been tepid.

Today’s economic troubles are the product of that complacency. Had the Malaysian government worked harder to strengthen economic fundamentals and win the trust of global investors, Najib’s scandal might not be sending the ringgit to its lowest level in 17 years. Had officials in Putrajaya, the country’s administrative capital, done more to internationalize Malaysia’s business culture, foreign investors wouldn’t now be rushing for the door. The FTSE Bursa Malaysia KLCI Index has fallen more than 11 percent from its April 21 peak, while official foreign-exchange reserves dropped below $100 billion for the first time since 2010.

As has been well reported, Najib faces questions about $700 million that allegedly moved through government agencies and state-linked companies to accounts bearing his name. (Najib denies it, while Malaysia’s anti-graft commission says it was a “donation.”) But foreign investors’ mistrust of the Malaysian government traces back to policies pursued over the past 18 years.

Perhaps the most notorious was Mahathir’s September 1998 decision to sack Deputy Prime Minister and Finance Minister Anwar Ibrahim. After months of sparring with Anwar over post-crisis reforms, Mahathir fired him and named himself finance minister, an awkward centralization of power that persists today and enabled Najib to create and oversee scandal-plagued state investment company 1Malaysia Development Bhd. And when Najib recently fired Deputy Prime Minister Muhyiddin Yassin, who was demanding answers from the prime minister, it seemed like history repeating itself. Just as in 1997 and 1998, the government is more concerned with closing ranks than retooling the economy.

Indonesia, Korea and Thailand are also having their share of troubles as China wobbles and the Federal Reserve prepares to hike interest rates. But Malaysia’s accelerating capital flight is particularly worrisome.

Malaysia’s central bank appears to be struggling to slow the ringgit’s 18 percent plunge over the past 12 months. The currency is now the lowest since Anwar’s departure in September 1998. That makes for an inauspicious economic bookend: Mahathir is now among those suggesting Malaysia peg the ringgit anew.

There’s certainly less stigma attached to such policies than there once was. In 1998, the International Monetary Fund called Malaysia’s peg a “retrograde step.” By December 2002, the IMF was terming it a “stability anchor.” And the IMF notably didn’t slap Greece for imposing capital controls, the way it did Mahathir in the late 1990s.

But the mere mention of another peg suggests Malaysia’s political establishment is still more concerned with the symptoms of the country’s problems than the underlying causes. The ringgit isn’t sliding because speculators like George Soros (who Mahathir blamed in 1997) are attacking it. Malaysian assets are suffering because the government failed to do basic economic maintenance — in part because it avoided the worst of 1997 and 1998, in ways Bangkok, Jakarta and Seoul couldn’t.

As that dawns on investors, the pressure to sell will intensify. Overseas ownership of Malaysian government and corporate debt fell 2.4 percent in July as a sense of crisis began to permeate the air.

Malaysia isn’t about to collapse. With its moderate growth and the highly-respected Zeti Akhtar Aziz helming the central bank, meltdown risks are limited. But Malaysian officials are wrong to argue that the ringgit’s slide doesn't reflect underlying fundamentals. It does indeed, and that’s the real problem — one that can be traced back to 1997.

The FTSE Bursa Malaysia KLCI Index slid 1.7 percent to 1,654.37 at 5 p.m. local time, the lowest close since March 2013. The measure has lost 11 percent from its April 21 peak. Tenaga Nasional Bhd., the state-owned power utility, was the biggest drag on the gauge on Monday. The ringgit slid for a fourth day, the lowest level since 1998.

Foreign funds have dumped $3 billion of the nation's shares this year amid concern the crisis will distract Najib as a commodities rout and the prospect of higher U.S. interest rates threaten economic growth. The prime minister is fighting off a scandal linked to 1Malaysia Development Bhd., a debt-ridden state investment company.

"Sentiment will remain bearish and stocks will be volatile in the short term," said Danny Wong Teck Meng, chief executive officer of Kuala Lumpur-based Areca Capital Sdn., which manages about $224 million in assets. Investors are concerned about how far the ringgit will fall given the political situation and declining currency reserves, he said.

Malaysia's ringgit depreciated 2.6 percent last week, its biggest loss since December. Foreign-exchange reserves fell below $100 billion for the first time since 2010 last month, the central bank said after markets closed on Friday.

Bond Outflows

Overseas ownership of the nation's government and corporate debt dropped 2.4 percent in July to 206.8 billion ringgit ($52.7 billion), the least since August 2012, other data released Friday showed.

The Wall Street Journal reported on July 3 that $700 million may have moved through government agencies and state-linked companies to accounts bearing Najib's name. The premier has denied taking money for personal gain and has described the furor as part of a campaign to remove him from office. A probe into about 2.6 billion ringgit ($662 million) that was deposited into Najib's personal accounts found that the funds were legal donations from the Middle East.

Tenaga sank 3.5 percent to the lowest close since January 2014. CIMB Group Holdings Bhd. and Malayan Banking Bhd. tumbled more than 1.8 percent.

Malaysian Prime Minister Najib Razak is passing a difficult time, amid allegations of a financial scam. In early July, the Wall Street Journal (WSJ) carried reports that $700 million was transferred through a complex web of transactions to Najib’s bank accounts in Kuala Lumpur in 2013. Graphic details of the flow of millions of Ringgit through banks, companies and government agencies, linked to 1Malaysia Development Berhad (1MDB), to Najib’s private account also came to light.

Neither the source of the money nor its final destination is clear. Handsome amounts from Najib’s accounts went to "Barisan Nasional" (BN) coalition component parties. Apparently, the funds were used for election campaign in 2013.

1MDB is a Malaysian government-owned development company. It was established in January 2009, to drive strategic initiatives for long term economic development of the country through global partnership and promoting foreign direct investment. 1MDB focuses on the areas of energy, real estate, tourism and agribusiness. Prime Minister Najib Razak chairs the advisory board of 1MDB.

In 2009, 1MDB and PetroSaudi International Limited set up a $2.5 billion joint venture to facilitate the flow of FDIs from Middle East to Malaysia. According to reports, this joint venture was involved in the financial scam, helped by some middlemen close to Najib.

Allegations of financial mismanagement regarding 1MDB’s operations kept mounting over the years, particularly from opposition parties. Its credential and transparency were frequently questioned by the media, as its accumulated debt rose to over $11 billion. There were allegations that 1MDB overpriced its purchases and donated the money to Najib’s foundation.

In early March 2015, the government set up a Joint Task Force to probe the alleged mismanagement of funds in 1MDB. A second Special Task Force (STF) was constituted in July to investigate the allegations against Prime Minister Najib. The members include the Attorney-General, Central Bank Governor, Police Chief and Anti-Corruption Commission. STF members have been drawn from different departments, so that it cannot be influenced.

When these stories appeared in local and international media, the reaction from Prime Minister Najib was to deny that any such fund was transferred to his accounts. "Accusations by the WSJ are malicious and supported by certain quarters in the country with the purpose of forcing me to quit as prime minister and president of the UMNO (United Malays National Organisation)," said the embattled Prime Minister.

Indeed, the federal political culture in Malaysia largely revolves around UMNO. Najib Razak’s UMNO is the largest component of Barisan Nasional (BN), a coalition of 13 parties, and had been in power since Malaysia’s independence from Britain in 1957.

The Special Task Force has been sniffing around for clues surrounding the sudden swelling of funds in Najib’s personal accounts. Bank accounts have been blocked, 1MDB office has been raided and several arrests have been made so far.

To keep the situation under control, Najib Razak in a drastic move on July 28, sacked his deputy Muhyiddin Yassin and replaced Attorney General Abdul Gani Patail. Muhyiddin had asked Najib to give up the 1MDB chairmanship and was quite vocal about Najib’s handling of the allegations. Najib also elevated close ally Home Minister Ahmed Zahid Hamidi as his deputy prime minister and replaced four other ministers. Gani, who was heading the investigation, had probably stepped on something incriminating. He was apparently preparing a charge sheet against Najib.

Though the new cabinet has stood by Najib’s ordeal, there are speculations of restlessness in UMNO.

In another move to stifle the media, the Home Ministry suspended two newspapers – The Edge Financial Daily and The Edge Weekly – for reporting on the scandal, as the ministry deemed its reports "prejudicial to public order".

Najib Razak’s probable nemesis lies within his party. His greatest threat is former Prime Minister Dr. Mahathir Mohamad, still widely respected as the architect of modern Malaysia. Mahathir, who carries considerable weight within UMNO, called upon Najib to prove his innocence by letting the Task Force look into his accounts or else resign. Mahathir’s next move will be interesting to watch.

The opposition alliance has been making loud noises. Azizah Ismail asked Najib to go on a leave so that the investigation can proceed without any hindrance. She however failed to capitalise on Najib’s vulnerability as they are in disarray. The loose opposition alliance is split into several factions.

In an interesting twist to the ghastly episode, the Malaysian Anti-Corruption Commission (MACC) on August 3 confirmed that the huge amount of money in Najib Razak’s account came from "donors" and not from 1MDB. It did not disclose the identities of the donors or the purpose of the contribution. Neither did it say how the money was spent. MACC said it was referring the matter to the central bank and police. MACC stopped looking into Najib’s bank accounts; instead, it is now looking into one of the subsidiaries of 1MDB. MACC’s statement also said that there was no draft charge sheet prepared against Najib.

Though this news may give some relief to Najib, it smacks of manipulation and intimidation. The dismissal of top officials earlier was a clear enough warning to the MACC. Najib Razak has apparently made arrangements to delay the findings of the Task Force and eventually clear his name.

There is a maxim in bureaucracy—"Do not setup an investigation, unless you know the results of the findings well in advance." It would be naïve to think that Najib does not know the findings of the Task Force.

Whatever may be the ultimate findings of the Task Force, the fact that huge amounts of money were transferred to Najib’s accounts has been established.

It looks like Najib will probably ride through this crisis. But his moral authority and credibility have been badly dented.

I read with much amusement of what Prime Minister Datuk Seri Najib Razak had addressed to his party members in Cheras, recently. He claimed so to speak that he is not a party president who wants all Umno leaders to behave as "yes man" to him.

("But I am a president who wants our party to be disciplined. To hold on to party principles")

"We can change our views or argue in a meeting; if we want to bang the table we can also do so, just do not throw the chairs. But when the party makes a decision, we have to stand behind the collective responsibility," he was quoted saying in a report by Bernama.

The Prime Minister said even though party leaders and members might disagree over a certain matter that had been decided, it could be renegotiated.

"I am not an autocratic person. Ask Ku Nan (Tengku Adnan), he also disagrees sometimes, but he remained as secretary-general," he said.)

However, I am inclined to ask what does he mean by his statements.

This is because the recent cabinet reshuffling, saw Najib ousting his deputy Tan Sri Muhyiddin Yassin from the cabinet line-up.

It is a known fact that Muhyiddin had been critical of Najib's decisions and had questioned the controversial national investment fund 1Malaysia Development Bhd. So much so that even the Prime Minister's Office chided his decision to be outspoken about the matter in the days leading to his ousting from the Cabinet.

It is clear, Muhyiddin was not a "yes man". Why then was he removed from cabinet?

On the contrary, newly appointed Communications and Multimedia Minister Datuk Seri Salleh Said Keruak had been supportive of Najib over 1MDB issue right from the get go. The then-Sabah Speaker was tireless in his typing out his views and publishing them via his blog:http://sskeruak.blogspot.com/

Lo and behold, Salleh was appointed Minister instead.

I am not privy to Umno meetings chaired by Najib nor any other Umno meeting for that matter. However this still smells strongly of hypocrisy.

Despite Muhyiddin's disagreement over the matter, was the issue renegotiated to the point he had to lose his Cabinet post?

Or did Muhyiddin asked the wrong questions which cause himself and his allies posts in the Cabinet?

IT IS NOT ABOUT FINANCIAL TRANSPARENCY IN PARTIES

The RM2.6 billion issue in Prime Minister Datuk Seri Najib Razak's account has been taken out of context by the Umno president himself.

When details were furnished that the sum of monies were donated anonymous by someone by the Middle East for party expenditure, Najib was quick to turn the tables against the Opposition parties.

This by stating his willingness to reveal Umno's accounts and challenging PKR, DAP and PAS to do same. While each party has responded promptly with PKR deputy president Mohamed Azmin Ali and Selangor DAP chairman Tony Pua stating their respective parties willingness to do so, it amuses to know that the controversial amount of money discussed by the people today was unknown to many Umno members.

Following the expose by Tan Sri Muhyiddin Yassin and party vice president Datuk Seri Shafie Apdal who is also a member of the Umno Supreme Council that they too were clueless about the donation until it first surfaced has opened more scrutiny towards the Premier.

While PKR welcomes Najib's call to be transparent about Umno's account, perhaps he as a leader should emulate his call in being transparent on his personal bank accounts.

Afterall it was his personal account in Ambank that was exposed by the Wall Street Journal and not Umno's accounts instead. Answer the questions that has long bogged the minds of the rakyat including your No 2 in the party.

Some 400 people, comprising journalists, lawyers, members of civil society groups and the public, rallied today against the three-month suspension of The Edge Weekly and The Edge Financial Daily, which have reported critically of debt-ridden state investor 1Malaysia Development Bhd (1MDB).

The Edge is challenging the suspensions with a judicial review, and its move is said to be the first time a Malaysian media organisation has ever done so. The High Court has allowed its application for a judicial review but rejected a stay on the suspension.